Senator Cynthia Lummis of Wyoming is set to announce legislation that would make Bitcoin a major financial asset in the United States.
At the upcoming Bitcoin 2024 conference in Nashville, Tennessee, where former President Donald Trump is also scheduled to speak, Loomis aims to announce a bill that would require the Federal Reserve to hold Bitcoin (BTC) as a strategic reserve asset.
If successful, the move would represent a major shift in US monetary policy, linking Bitcoin to traditional reserves like gold and foreign currencies.
Details of the bill are still under wraps, but sources familiar with the matter have revealed that it directs the Federal Reserve to include Bitcoin in its reserves to shore up the stability of the US dollar. Lummis has the support of his colleagues on the Senate Banking Committee and hopes to win Trump’s approval.
Fox Business was the first to a report On potential legislation.
What will the US Bitcoin reserve look like?
If the United States adopts Bitcoin as a strategic reserve asset, it may be able to leverage its status as the largest nation-state holding Bitcoin and echo Trump’s sentiment that all remaining Bitcoin should be mined in the United States.
Essentially, a strategic bitcoin reserve would involve the US Treasury holding large amounts of bitcoin as part of its reserve portfolio, similar to what it already does with gold or foreign currencies.
The reserve would serve as a formal endorsement by the U.S. government of Bitcoin’s legitimacy and future use cases. The move would position the United States favorably against global competitors and accelerate Bitcoin’s acceptance as digital gold and a long-term savings instrument.
Bitcoin at the heart of politics
The proposal comes amid a tense political climate, with Vice President Kamala Harris, the presumptive Democratic nominee, being advised to soften the administration’s stance on cryptocurrencies.
Since the United States already owns a large amount of Bitcoin, potential legislation could spark a global race among countries to accumulate more of this asset.